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HC directs administrators to protect Priyamvada Birla's assets

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Press Trust of India Kolkata
Last Updated : Jan 25 2013 | 4:04 AM IST

A division bench of Chief Justice J N Patel and Justice Soumitra Pal deciding the rights and powers of the committee of administrators, directed that they would be entitled to all rights as shareholders in respect of shares which formed part of her estate.

The administrators cannot, however, distribute any asset of the estate over which the Birlas and Lodhas are fighting a bitter legal battle since 2004 following the death of Priyamvada Birla, the court directed.

While late R S Lodha had claimed that he had been willed away the assets of M P Birla by his widow Priyamvada through a 'Will' of 1999, the Birlas challenged it before the high court and had also sought probate of two 'mutual wills' of M P Birla and Priyamvada Birla, which are said to have bequeathed M P Birla's property to charity.

The M P Birla Group, estimated to be worth Rs 5000 crore in 2004, operates several companies like Birla Corporation Ltd, Universal Cables, Vindhya Telelinks, Birla Ericsson Optical Ltd etc.

Following the death of R S Lodha, a chartered accountant by profession, in October 2008, prayers were made before the high court by the Birlas to appoint administrator to the estate of Priyamvada Birla.

The court had appointed three administrators -- Justice C K Thakkar, former Supreme Court judge, M K Sharma and Amal Chandra Chakraborty.

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The court today directed the administrators would administer the estate of Priyamvada Birla for its protection and preservation in their best discretion and wisdom.

The bench granted a four-week stay on operation of the order on a plea by the counsels of Lodhas.

  

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First Published: Aug 23 2012 | 6:05 PM IST

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